Fondul Proprietatea — Net Asset Value 2016

Dec 14, 2016

PJM07.1AFIASMDLUX0037
Fondul Proprietatea SA
PJR09SIIR/400006
29.11.2016

Fund Administrator: Franklin Templeton International Services S.à r.l. Administrator Code: PJM07.1AFIASMDLUX0037 Fund: Fondul Proprietatea SA

Fondul Proprietatea SA 's Assets and Liabilities based on NAV calculation according with the CNVM Regulation No. 4 / 2010, as subsequently amended

	Lei
1. Non-current Assets	7,382,675,732.65
1.1. Intangible assets	557,497.59
1.2. Tangible assets	0.00
1.3. Financial assets	7,382,118,235.06
1.3.1 Listed shares**	10,277,621.71
1.3.2 Unlisted shares	7,371,840,386.56
1.3.3 Government securities	0.00
1.3.4 Certificates of deposits	0.00
1.3.5 Bank deposits	0.00
1.3.6 Municipal bonds	0.00
1.3.7 Corporate bonds	0.00
1.3.8 Newly issued securities	0.00
1.3.9 Participation titles of UCITS and/or of OCIU	0.00
1.3.10 Other financial assets	226.79
2. Current assets	3,700,286,494.64
2.1 Inventory	0.00
2.2 Receivables out of which:	20,144,676.86
- commercial papers	0.00
2.3 Cash	6,453,390.50
2.4 Short term financial investments	2,238,201,141.22
2.4.1 Listed shares**	2,238,201,141.22
2.4.2 Unlisted shares	0.00
2.4.3 Municipal bonds	0.00
2.4.4 Corporate bonds	0.00
2.4.5 Participation titles of UCITS and/or of OCIU	0.00
2.5 Newly issued securities	0.00
2.6 Government securities	1,071,612,365.49
2.7 Bank deposits	363,874,920.57
2.8 Certificates of deposits	0.00
2.9 Other current assets	0.00
3. Derivatives	0.00
4. Prepaid expenses	150,193.05
5. Total assets	11,083,112,420.34
6. Total liabilities	39,168,386.00
6.1 Borrowings from bond issues	0.00
6.2 Amounts due to credit institutions	0.00

[English translation of the original report in Romanian - for information purposes only]

1

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6.3 Advance payments to customer accounts	0.00
6.4. Payables	13,743,633.58
6.5 Commercial papers due	0.00
6.6 Amounts due to group companies	0.00
6.7 Amounts due to related parties	0.00
6.8 Other debts	25,424,752.42
7. Provisions	856,247.22
8. Deferred income out of which:	0.00
8.1 Subsidies for investments	0.00
8.2 Deferred income	0.00
9. Shareholders' equity out of which:	11,043,087,787.12
9.1 Share capital	9,168,314,116.70
9.2 Share capital premiums	0.00
9.3 Revaluation differences	41,410,588.17
9.4 Reserves	3,993,855,339.57
9.5 Retained earnings	-2,473,157,471.66
9.6 Period result	312,665,214.34
9.7 Profit appropriation	0.00
10. Total liabilities and Shareholders' equity	11,083,112,420.34
11. Net Asset Value	11,043,087,787.12
12. No of shares issued*	9,648,508,719
13. Net asset value per share	1.1445
14. Number of portfolio companies out of which:	45
14.1 Companies admitted to trading on a regulated market	7
14.1 Companies admitted to trading on an alternative regulated market***	6
14.3 Companies not admitted to trading	32

Legend:

* = Represents the number of shares related to the paid-up subscribed share capital (according to provisions of Law 247/2005, Title VII, Art. 92 , alin. 5 "Subscribed unpaid shares are not taken into account for the computation of net asset value per share for Fondul Proprietatea") excluding (a) the Fund's own shares bought back (Treasury shares), according to provisions of CNVM Regulation no. 4/2010, as subsequently amended, and (b) the equivalent number of shares corresponding to the GDRs bought back and held

** = Include also the value of holdings admitted to trading on AeRo market (alternative regulated market)

[English translation of the original report in Romanian - for information purposes only]

_____________________________________________________________________________________________________________________________________ FONDUL PROPRIETATEA S.A., an alternative investment fund • Headquarters at: 78-80 Buzesti Street, 7th floor, Bucharest 1st district, postal code 011017, Romania. • Fiscal Identification Code (CIF): 18253260, registered with the Trade Registry under no: J40/21901/2005 • Register on Data Protection Notification Register under number 18668 • Subscribed share capital RON 9,168,314,116.70, Paid-up Share Capital: RON 8,859,073,619.20 • Tel.: + 40 21 200 9600; Fax: +40 21 200 9631; Email: office@fondulproprietatea.ro; Internet: www.fondulproprietatea.ro

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*** = Include the number of companies admitted to trading on AeRo market (alternative trading system)

Franklin Templeton Investment Management Ltd United Kingdom Bucharest Branch, acting as Investment Manager on behalf of FONDUL PROPRIETATEA S.A

Oana Truța Marius Nechifor Legal representative Compliance Officer

BRD Groupe Societe Generale

Victor Strâmbei Claudia Ionescu Manager Depositary Department Director

[English translation of the original report in Romanian - for information purposes only]

_____________________________________________________________________________________________________________________________________ FONDUL PROPRIETATEA S.A., an alternative investment fund • Headquarters at: 78-80 Buzesti Street, 7th floor, Bucharest 1st district, postal code 011017, Romania. • Fiscal Identification Code (CIF): 18253260, registered with the Trade Registry under no: J40/21901/2005 • Register on Data Protection Notification Register under number 18668 • Subscribed share capital RON 9,168,314,116.70, Paid-up Share Capital: RON 8,859,073,619.20 • Tel.: + 40 21 200 9600; Fax: +40 21 200 9631; Email: office@fondulproprietatea.ro; Internet: www.fondulproprietatea.ro

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Annex - Valuation methods used for the securities and the monetary market instruments held by Fondul Proprietatea S.A. as at 29 November 2016

The valuation methods used for the computation of the NAV as at 29 November 2016, for the securities and the monetary market instruments held by Fondul Proprietatea S.A. are the following:

• 1. Listed companies on BVB traded within last 30 trading days: Closing Price
• 2. Listed companies on AeRo market (alternative trading system) traded within last 30 trading days: Reference price – Average Price
• 3. Listed companies with no trades within last 30 trading days: Shareholders' equity / share (from the annual financial statements prepared in accordance to Romanian accounting regulations or in accordance to IFRS), Fair value/share;
• 4. Unlisted companies: Shareholders' equity / share (from the annual financial statements prepared in accordance to Romanian accounting regulations or in accordance to IFRS), Fair value / share;
• 5. Companies in insolvency or reorganisation: Valued either at zero or at the value provided by an independent valuator;
• 6. Companies in liquidation/dissolution/ bankruptcy: Valued at zero;
• 7. Companies with negative shareholders' equity, unlisted, or listed but not traded within the last 30 trading days: Valued at zero;
• 8. Companies for which the annual financial statements of the previous year were not available 90 days after the legal term: Valued at zero;
• 9. Treasury bills: Acquisition price cumulated with the accrued interest receivable calculated for the period elapsed since the date of acquisition;
• 10. Listed government bonds: Fair value (reference composite price, including the cumulated interest);
• 11. Bank deposits: Bank deposit amount cumulated with the accrued interest receivable calculated for the period elapsed since its creation date.

Franklin Templeton Investment Management Ltd United Kingdom Bucharest Branch, acting as Investment Manager of FONDUL PROPRIETATEA S.A

Oana Truta Legal Representative Marius Nechifor Compliance Officer

[English translation of the original report in Romanian - for information purposes only] ____________________________________________________________________________________________________________________________________________

FONDUL PROPRIETATEA S.A., an alternative investment fund • Headquarters at: 78-80 Buzesti Street, 7th floor, Bucharest 1st district, postal code 011017, Romania. • Fiscal Identification Code (CIF): 18253260, registered with the Trade Registry under no: J40/21901/2005 • Register on Data Protection Notification Register under number 18668 • Subscribed share capital RON 9,168,314,116.70, Paid-up Share Capital: RON 8,859,073,619.20 • Tel.: + 40 21 200 9600; Fax: +40 21 200 9631; Email: office@fondulproprietatea.ro; Internet: www.fondulproprietatea.ro

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Annex – Changes in the valuation methods used for the computation of the NAV of Fondul Proprietatea as at 29 November 2016

For the computation of the NAV as at 29 November 2016 for Fondul Proprietatea SA, the valuation methods used for the investments in the companies presented below changed:

1) Mecon SA

For this holding, the valuation method has been changed from Reference price - Average price (respectively Lei 2.4 /share) to Fair value (Last available trading price) (respectively Lei 2.4 /share) because the shares of this company were not traded during the last 30 trading days and the valuation based on the last available trading price is considered to reflect better the fair value of this holding than shareholders' equity per share (respectively Lei 33.0850 /share). This change of valuation method did not have any impact on the Fund's NAV.

2) Comsig SA

Following the decision of General Shareholders Meeting of this company on 1 November 2016 to distribute dividends, the valuation method for this holding has been updated from Shareholders' equity as of 31 December 2015 per share (respectively 26.0118 Lei/share) to Shareholders' equity as of 31 December 2015 adjusted with dividends declared per share (respectively 3.2816 Lei/share). The total impact of this update on the Fund's NAV was a decrease of Lei 1,719,653.28.

Franklin Templeton Investment Management Ltd United Kingdom Bucharest Branch, acting as Investment Manager of FONDUL PROPRIETATEA S.A.

Oana Truța Marius Nechifor Legal representative Compliance Officer

[English translation of the original report in Romanian - for information purposes only] ____________________________________________________________________________________________________________________________________________

FONDUL PROPRIETATEA S.A., an alternative investment fund • Headquarters at: 78-80 Buzesti Street, 7th floor, Bucharest 1st district, postal code 011017, Romania. • Fiscal Identification Code (CIF): 18253260, registered with the Trade Registry under no: J40/21901/2005 • Register on Data Protection Notification Register under number 18668 • Subscribed share capital RON 9,168,314,116.70, Paid-up Share Capital: RON 8,859,073,619.20 • Tel.: + 40 21 200 9600; Fax: +40 21 200 9631; Email: office@fondulproprietatea.ro; Internet: www.fondulproprietatea.ro